In the midst of the Cornoavirus pandemic, we are witnessing highly unstable and uncertain times right now, but it appears that House Democrats are looking for a modern solution to solve a very real problem: “digital dollars” and “digital wallets” to help get the stimulus package out to US citizens.
The announcement of the plan will surely be major news in both the cryptocurrency and blockchain worlds, globally, as the US is apparently getting real about paving the way for a centralized bank and currency.
This comes on the heels of House Speaker Nancy Pelosi’s “Take Responsibility for Workers and Families Act” and Financial Services Committee Chairwoman, Maxine Waters’ “Financial Protections and Assistance for America’s Consumers, States, Businesses, and Vulnerable Populations Act (H.R. 6321)”, both Democrats, who are looking for a solution to delivering stimulus packages to American citizens, who will surely be in need of financial assistance as the economy slowly grinds to crawl.
Digital Dollar: “A balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal Reserve Bank or … an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System).”
Digital Dollar Wallet: “A digital wallet or account, maintained by a Federal reserve bank on behalf of any person, that represents holdings in an electronic device or service that is used to store digital dollars that may be tied to a digital or physical identity.”
Mandates and Guidelines
- All “member banks” are required to establish a ‘pass-through digital dollar wallet’ to all customers eligible for the stimulus.
- “Member banks” include banks that are “members’ of the Federal Reserve and regulated by the Fed.
- “Non-Member” state banks (which are banks that are neither members of the Federal Reserve or regulated by the FDIC) are given the option to “opt-in,” in order to offer pass-through digital dollar wallets if they would like to participate.
- Federal Reserve banks would also make digital dollar wallets available to any American citizen eligible for the payments.
- The U.S. Postal Service would be responsible for helping any un-banked citizens and/or citizens without proper identification to establish their identity, so that a digital dollar account can be set up for them, allowing them to access their funds via ATM machines.
With the amount of partisan bickering occurring right now over the Cornoavirus Stimulus package, it is truly unknown whether this will become a reality or not. It must pass the House and the Senate, and the two parties do not appear all that willing to settle and come to the compromise, which is drawing criticism on both sides of the line. GOP members are ready to sign and get the package out there, while the Democrats say they want the bill to do more for US citizens and less for big businesses.
Only time will tell, but in order to read the bill in its entirety, click here. And of course, if you have any questions, please call us at 919-422-2607, or schedule a free consultation with Craig using our online scheduler.